Question

true or false? business law

1. every person who signs a negotiable instrument is liable for payment of that instrument when it comes due.

2. an acceptor is primarily liable on an instrument.

3. warranty liable on a negotiable instrument does not require a signature and extends to both signers and non signers.

4. the dishonor of an instrument relieves secondary parties of liabilty.

Answer 1

Answers:

1) True, every person who signs on the negotiable instrument shall be liable.

2) True, if it has been specifically mentioned on the check or draft, the drawer shall be discharged from the liability and the acceptor shall be held liable.

3) True, warranty liablilty does not require a signature in case of implied warranty.

4) False, Dishonour of an instrument shall not relieve any of the party who has signed, when the primary party fails to make payment, the secondary party shall be held liable.